The Finance Minister Arun Jailtly in its budget for 2017-18 has shown its clear intent of move towards cashless economy. Proposal of introducing 20 lac Aadhar based Point of Sale (POS) machine will be a game changer for digital payments ecosystem in the semi-urban and rural areas where conventional POS machines are absent and people do not have access to mobile phones.

“Though it remains to be seen if the proposed setting up of Payments Regulation Board under RBI and amendments in the Payments and Settlement Act will bring about fundamental changes to accommodate the fast changing digital payments ecosystem in the country.” Said Mr Rahul Gochhwal, co-founder, Trupay, the Digital Payment app based on UPI in his budget reaction.

“The budget will help Transforming India into a less cash economy to tackle the issue of corruption and clean up the system is one of the integral strategies of the government.” Said Mr Gochhwal

“ Digital payment infrastructure would be strengthened, along with the grievance handling system”. Up gradation of digital infrastructure will encourage non-cash payments “ he added.

Big Thrust on Digital India

By Bipin Preet Singh, Founder & CEO, MobiKwik

Big digital push is the thrust of the Budget and is a very welcome and the right move for the future growth of the economy. I commend this progressive budget that invests heavily in technology and digitization. The focus on digital payments will lead to revolutionary transformation in Indians’ payment habits. Digital payments will be the new normal in 2017 and we are very excited about this. As we become more digital, India will see new taxpayers and better transparency in incomes.

Upgrading digital infrastructure to support cashless transactions in rural and semi urban areas will encourage more merchants and consumers to transact on non-cash and online platforms. However, we feel that the government must have also considered promoting startups in the digital payments and digital security areas. Secure digital transactions is the only way to sustain India’s habit of cashless payments.

The budget also promoted the startup ecosystem with tax benefits. Reduction in the corporate tax for Medium and Small Scale Enterprises (MSMEs) to 25% will also go a long way in attracting more investment in the country. It will surely give the domestic sector a massive push and indirectly help the country in restoring its healthy GDP growth forecast.

Overall the Budget proposals look to boost consumption. The impetus on affordable housing and rural infrastructure will boost lower and middle income and translate into consumption.